Question

Identify, which of the following is not a source of demand for foreign exchange.

• A. Imports of goods and services
• B. Gifts by Indians to their families living abroad
• C. Indian tourists visiting foreign countries
• D. Loans from Rest of the World

Hint:

Remember: Foreign exchange demand comes from imports, gifts, tourism, and investments. Loans typically represent foreign exchange supply.

Answer 1

The Correct Option is D

\text{Imports, gifts, and tourism generate demand for foreign exchange. Loans from abroad are a source of foreign exchange supply, not demand.}